MEMPHIS, Tenn. Nov. 19, 2025 – FedEx Corp. (NYSE: FDX) today released its 2025 Holiday Season E-Commerce Trends report in collaboration with C Space, revealing that nearly all large U.S. retailers (97%) surveyed plan to use AI to enhance the shopping experience this holiday season. Retailers are expected to incorporate AI tools including chatbots for improved customer service, audience targeting, inventory management, and pricing optimization.
Survey Highlights
- AI is enhancing online shopping for retailers and consumers: AI and personalization are at the forefront for large businesses as consumers prioritize free shipping, flexible return policies, and avoiding shipping fees. Retailers seek to personalize the shopping experience by leveraging past customer behavior to make recommendations and incorporate AI chatbots, tools for audience targeting, inventory management, and more. On the consumer side, four in 10 plan to use AI this holiday season primarily to find the best deals, get gift ideas, compare product features, and research brands.
- Cost and returns shape decisions: Shipping costs (82%), promotions (74%), and return policies (54%) are the top factors influencing where consumers shop. Returns are especially influential this season, as 65% of shoppers expect retailers to offer free return options, reinforcing the importance of a seamless post-purchase experience.
- Merchant return policies are split by size: Thirty-six percent of merchants are offering free returns or exchanges within 30 days and 26% are not offering any free returns or exchanges. This difference is driven primarily by the size of the business. Eighty-four percent of large businesses offer free returns or exchanges for up to two months, while 37% of small and 39% of medium businesses do not offer free returns or exchanges.
FedEx Holiday Readiness
As companies adopt new technologies to meet growing consumer expectations, FedEx is helping consumers and merchants of all sizes with AI-powered visibility tools, flexible delivery options, and simple returns that make the holiday shopping experience effortless, affordable, and reliable.
“FedEx is ready for an outstanding peak holiday season, with unmatched speed, innovative digital solutions, and an unparalleled global network,” said Brie Carere, executive vice president and chief customer officer, FedEx. “The combined power of our digital and physical networks enables us to deliver seamless, end-to-end service and provide peace of mind for our customers during the busiest time of the year.”
FedEx is also helping merchants navigate an evolving global trade environment with digital solutions built to enhance visibility, manage customs clearance, and simplify reverse logistics—helping drive down costs for merchants and improve the consumer experience. Some of these digital tools and solutions include:
- Picture Proof of Delivery and Map View – Offers real-time tracking and visual confirmation for added peace of mind.
- FedEx Delivery Manager® – Provides flexibility and control, allowing customers to schedule deliveries, redirect packages, or place vacation holds.
- FedEx® SenseAware – Gives merchants real-time visibility across their supply chains, enabling smarter inventory and delivery decisions.
- FedEx Import Tool (FiT) – Helps merchants manage cross-border shipments by simplifying documentation and compliance for international trade.
- FedEx® Easy Returns – Makes returns simpler with convenient no-box, no-label QR code drop-off at 3,000 participating FedEx Office and Kohl’s locations.
This holiday season, FedEx is primed to flex its network faster than before and provide outstanding levels of service across its portfolio.
Additional peak facts and resources:
- Ground speed – FedEx Ground® is faster to more locations than UPS Ground.
- Weekend coverage - FedEx Home Delivery delivers to more residential locations than UPS Ground on the weekends.
- Rural delivery coverage – FedEx delivers to more rural locations daily, Monday through Friday, than UPS Air and UPS Ground.
- Holiday hub – More information, including tools and tips to help customers prepare for the busy season, can be found at the FedEx Holiday Hub.
- Holiday shipping deadlines – FedEx recommends customers shop and ship early. Deadlines for select services are available here.
For more insights, read the full 2025 Holiday Season E-Commerce Trends report.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $89 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.